NatWest takes £256m hit on office closures

NatWest incurred a £256m charge relating to office disposals last year, amid a steep annual loss driven by provisions made for defaults on loans. The bank said the charge, which was part of a broader group of “strategic costs” of more than £1bn, was partly down to the closure of its Regents House office in Islington, N1, last summer. It has also undertaken work on its remaining offices to “optimise” them for new ways of working. Those include sites at 250 Bishopsgate, EC2, and 440 Strand, WC2. The news came as part of the bank’s full-year results, in which it beat expectations to post a £64m quarterly pre-tax profit for the final three months of the year. It posted a full-year loss of £351m, while revenue dropped almost a quarter year on year to £10.8bn. Chief executive Alison Rose said: “Despite reporting a loss for the year, NatWest Group delivered a resilient underlying performance in a challenging operating environment. “We cannot be certain of the long-term impact of the pandemic. But we can be certain that our bank will continue to support those who need it.” The bank also confirmed it would pull out of the Republic of Ireland after more than a century in the country. The bank’s retreat from Ireland, where it operates as Ulster Bank, is part of a move to free up capital and focus on its core UK market. Rose said that despite it being the third-largest bank in Northern Ireland “it has become clear Ulster Bank will not be able to generate sustainable long term returns for our shareholders”. To send feedback, e-mail alex.daniel@egi.co.uk or tweet @alexmdaniel or @estatesgazette Picture © Stefan Kiefer/imageBROKER/Shutterstock